Boliden Rises to Three-Week High in Stockholm After HSBC Upgrade

July 16 (Bloomberg) -- Boliden AB, a Swedish copper and
zinc producer, advanced to a three-week high in Stockholm
trading after HSBC Holdings Plc raised its rating on the stock,
citing more conservative profit estimates.

Boliden climbed as much as 3.4 percent to 89.35 kronor, the
highest intraday price since June 20. It traded up 3 percent at
3:42 p.m. local time, the biggest gain on the OMX 30 Stockholm
index after SKF AB.

HSBC upgraded its recommendation on Boliden to neutral from
underweight, saying its earlier rating was “based on the view
that consensus was much too optimistic.”

Estimates for earnings before interest and taxes have
declined by 47 percent in the past three months and are “now in
the right ball park,” the brokerage said today in an e-mailed
note. “The stock will now move in line with the sector.”

Boliden has seen income fall the past two years as
commodity prices declined and mining costs rose. Second-quarter
earnings will be “weak,” HSBC said, citing maintenance
expenses, lower metal prices and possible inventory revaluation.